350zCommTech
TSP Legend
- Reaction score
- 71
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Happy holidays and good luck to all.![]()
Hi 350,
I'll kick off the DEC "I" discussion with a question:
The I-Fund is nearest to the previous top trend point, back in June, than any of the other stock funds. Is it rational to disregard this fact - and expect "I" to continue as perhaps best performer/as continuing at perhaps best growth-rate - as last couple months, even years (relative to other stock funds)?
VR
I expect the Fed to decrease rates, this will lower the value of the dollar, so foreign funds will rise in value compared to domestic funds.
good day for the F fund....bad day for us!
Easy now partner, I'm in the F today.![]()
I would not be hanging in there too long.
Heads up for Thursday. BOE and ECB will have interest rate announcements. The consensus is that they will hold.
Not sure where I read this, but saw source that said inflation is running huge in Asian Markets.
Something like 8% in Japan, and double digits, in like China. I recall Asian Banks don't like to/rarely adjust rates, but if true they may not have a choice! Effect may be a decrease strength of their currency relative to US dollar. Anyone know more on this - can give true picture on whether/not anything behind this speculation? :blink:
VR
Japan will hold its rates for as long as it can. Japanese people have a tendency to "over-save" and not borrow, and raising rates will only encourage this behavior. Two very big reasons for this are that it is necessary to save to send your kids to the good schools and prep classes, and their pension system is terrible. That's along with a cultural bias toward saving, borrowing is seen as shady or irresponsible.Not exactly. While China has double digit inflation, Japan is still trying get out of deflation. I'm not sure if China will continue to raise rates, but Japan will be on hold at .50% until for a while. I can't see them raising rates until the credit markets start function again.
Well, it actually is rather extreme in Japan, with little kids going to pre kindergarden to get into the right kindergarden, everyone in Juku (afternoon and night cram schools for entrance exams) and paying through the nose for the "right university" and "right high school". As for the borrowing, they usually won't do it at all, even when it would be good for a long term investment.yeah, the Japanese are whacky all right. saving up for things and paying for silly expenditures like education.
yeah, the Japanese are whacky all right. saving up for things and paying for silly expenditures like education.
seems I remember my parents not having credit cards and thinking that layaway was a somewhat decent way to buy something that you really wanted. fiscal discipline -- thing of the past![]()
Thanks 350, I stand corrected. One of those times I was 1/2 listening.Not exactly. While China has double digit inflation, Japan is still trying get out of deflation. I'm not sure if China will continue to raise rates, but Japan will be on hold at .50% until for a while. I can't see them raising rates until the credit markets start function again.